However, a no deposit rental option is an alternative to this conventional security deposit, offering tenants and landlords numerous benefits. Providing landlords with the same cover and protection they’ve always had, no deposit rental also makes tenants’ lives easier by allowing them to move into a property without shelling out for a deposit first.
That said, from 1 June last year, the Government introduced a five-week deposit cap for all tenancies with an annual rent of fewer than £50,000. With the no deposit rental scheme from Zero Deposit™ six weeks cover is still on offer for landlords, making this an attractive prospect for them, too.
Limitations for Landlords and Agents
With the new enforcements in place there are, of course, limitations on what landlords and agents can charge tenants. Some fees and charges are permitted under The Tenant Fees Act but others are defined as prohibited payments. The key charges include capped holding deposits and set timeframes for repayment, as well as capped security deposits.
You can rest assured, then, that if you’re about to look for rental properties, that you won’t be stung with any charges you weren’t expecting.
Six Weeks’ Security
Landlords, meanwhile, can enjoy faster renting and six weeks’ security. In fact, your landlord won’t have to pay a penny with the Zero Deposit™ Guarantee no deposit scheme. They can also attract tenants faster, meaning void periods will be reduced – and, in the instance of a dispute, they’ll receive fair pay-outs within just two working days.
This eliminates any of the hassle they might traditionally have experienced when renting out their property.
For landlords keen to hear more, there’s a dedicated page on the Zero Deposit site which explains exactly how everything works.